Saudi Arabia won’t make ‘sharp’ production cuts, says Al Rajhi

Saudi Arabia won’t make ‘sharp’ production cuts, says Al Rajhi

BY WAEL MAHDI

RIYADH (Bloomberg) -- Saudi Arabia is not expected to make “sharp” cuts to its crude production in November and December, Al Rajhi Capital said.

“Any meaningful decline in the kingdom’s oil production will take place only when the majority of Libyan oil production comes back and Iranian oil production starts rising,” the investment arm of the nation’s biggest bank by market value said in an emailed report today.

Saudi Arabia is burning more fuel oil at power plants instead of crude this year, “which means that the seasonality impact on crude production will be smaller in winter,” the investment bank said.